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The process of getting a small business loan for a young business owner

Hello SBA community. If everything goes as planned, I will soon be the owner of a convenience store that has been in my community for more than 80 years. The current owner is leaving very soon, and if all goes as intended, I will be taking over the store. I have spoken with the original owner who has guaranteed that if I manage to get a loan to fund a restart, he will lease the building to me, and I will be the owner of the business. Unfortunately, I have no idea where to begin. This is all a little overwhelming for me.First off, I am only 19 years old. I am a college student, and I have no established credit. I do not have debts such as student loans or anything, though. But my age alone is enough to make me believe a lender will look at me as too much of a risk. Do you think a lender will look at me like that? Again, the business is certainly not a high risk. As I said before, the store has been in our community for more than 80 years and has never gone out of business. It is in an excellent location, and every owner has always enjoyed great business (i.e. lots of traffic, commuters, everyday customers, etc.).My main question is: could someone explain to me the process of getting a small business loan? I have been browsing this website, and there are just so many different types of loans. It's all pretty confusing to me. Before I go to my local bank to meet with a lender, will I need any particular forms? Will I need to type up a business plan to present to them? What exactly should I expect?I will be working closely with the original owner, so even though I have never owned a business before, I will be consulting with him on a regular basis. I will also not be running the store alone. It will be more or less a family business. Both my parents and my brother intend to work there. This is just too big an opportunity for me to pass up, and I want to do everything I possibly can to ensure I can aquire a loan.Hopefully I will get some much needed advice by posting here. Any help would be really appreciated.

BizResearcher | Window Shopper |
1/24/2012 - 12:21 pm

You may want to visit with a counselor at a small business development center in your area. Their services are free and they can guide you to the best lenders to approach and help you through the process. Have you considered asking the current owner to carry the paper on the loan and allow you to make payments out of the store earnings? That would provide him with a regular source of income and give you more flexibility.

kmurray | Community Moderator |
1/23/2012 - 3:57 pm

Hi,
In addition to the information on our website about loans, an approach that may be useful is talking to a mentor who could offer you specific guidance.
Another great resource is SCORE, one of SBA's resource partners. SCORE is a nonprofit association comprised of thousands of volunteer business counselors throughout the country. They are trained to serve as advisors and mentors to aspiring entrepreneurs and business owners-at no cost to you! You can find your local office or set up an online meeting to chat with someone about your questions.